After the downward period of land production in 2021, the investment demand for woodworking machinery and equipment is expected to recover. Since the second half of 21 years, under the double pressure of financing side and demand side, the prosperity of the real estate industry has gradually declined. according to wind, the cumulative year-on-year growth of residential completed area has narrowed from 27.1 per cent at the end of 21Q1 to 10.8 per cent at the end of the year. Over the past 22 years, according to the National Bureau of Statistics, China's medium-and long-term new RMB loans fell 4.77% in January compared with the same period last year, narrowing the 25pct from the previous month, and significantly expanding credit; in February, China's manufacturing PMI index increased by 50.2%, with a month-on-month increase in 0.1pct, of which the new orders index was 50.7%, up 1.4 pct from the previous month, returning to the expansion range, and the demand for furniture and equipment is expected to recover at the bottom. In addition, according to the government work report, as the city policy to promote the virtuous circle and healthy development of the real estate industry has become one of the tasks of the government for 22 years, the downstream real estate boom is expected to stabilize.
Woodworking machinery leader to expand production through the cycle, products out of the old and bring forth the new. Hongya CNC, as a furniture and equipment company, is also affected by the decline in real estate, with year-on-year growth narrowing in a single quarter, but benefiting from the expansion of its production capacity and the leading edge of product strength, according to the company's 21-year performance forecast, the full-year return net profit still achieved a high growth of 44.71%. 56.06%. During this period, Hongya CNC maintained its investment in product research and development, and continuously realized the expansion of category coverage and iterative upgrading of existing products. On the one hand, by absorbing the advanced technology of the Italian subsidiary masterwood, it officially launched new categories, five-axis machining centers and wooden door production lines through the official website in November and December of 21, as well as more efficient edge sealing machines, CNC drills, cutting saws and other products. In addition, according to the company's official account, in November 21, Hongya CNC extended its business to the automatic paper-cutting intelligent packaging section of furniture equipment to accelerate the expansion of the group's industrial territory.
Profit forecast and investment advice: the company's EPS for 21-23 years is expected to be 1.81max 2.29max 2.95 yuan per share, considering the company's production capacity expansion, maintaining the company's reasonable value of 45.31 yuan per share and maintaining the "buy" rating.
Risk tips: product demand is not as expected; production capacity construction is not as expected, etc.